Wenzhou Footwear Industry Will Face A Shuffle

On the evening of late May, Wenzhou, "China" shoes "26", the huge factory area, quiet is extraordinary.

"Many shoe factories are on vacation." The security guard from Guizhou said to the factory gate that the situation in the past three or four years is "not as good as a year".

The manufacturing of light consumer goods, including the shoe making industry, is one of the pillar industries in which Wenzhou originally started. In recent years, with the gradual loss of its comparative advantage, where will the shoe industry go? In twenty-first Century, the economic report interviewed the executive chairman of Wenzhou shoe leather industry association, Xie Rongfang.

　 "There is still a period of development for the footwear industry in Wenzhou".

Reporter: in recent years, people have discussed more of the problem is that, with the increase in land, labor and other factor costs, similar to shoemaking fast moving consumer goods industry may migrate to other cost depression, Wenzhou may become a pure export brand, capital and technology place, how do you see the current development situation of footwear industry in Wenzhou?

Xie Rongfang: I don't think so. Data show that at present, the footwear industry in Wenzhou is still in a stage of sustained and healthy development - although there are enterprises in trouble, business owners are also on the run.

First, the development of shoemaking enterprises in the top ten brands of Wenzhou is basically stable. At the end of last year, the number of shoe enterprises that paid taxes in Wenzhou was 2761, which rose to 3647 in the first quarter of this year, an increase of more than 800. These new ones are newly derived enterprises. From the export situation, last year, Wenzhou footwear exports accounted for 28.41% of the city's foreign trade exports, a record high.

Second, the children of the first generation of shoemaker owners began to take over shoes, though not many, but signs had emerged. We have a shoe making enterprise. The boss is tired of making shoes. He gives the shoe factory to his daughter, and his son makes the shoes' foreign trade. In the first year of preparation, he makes 60 million export volume in second years. Such achievements are unimaginable for the first generation of family workshops. From this situation, we can see more hope for Wenzhou. The old generation simply made shoes, and there were no accidents.

Third, domestic shoe factories have gone downhill, but Wenzhou Women's shoes are developing well - more than 90% of Wenzhou women's shoes are sold domestically. 10 years ago, Wenzhou's most prestigious shoemaking enterprises such as AOKANG, Kangnai and red dragonfly commissioned Chengdu to produce women's shoes in OEM. Today Wenzhou's women's shoes are produced by themselves, and more than 20 brand spokesmen of shoe enterprises are international and domestic stars.

Therefore, from the above point of view, the footwear industry in Wenzhou should still have a period of development. When the whole production base has to be transferred out, its marketing, R & D and headquarters will remain in Wenzhou.

Outsourcing enterprises are difficult to solve industrial chain matching.

Reporter: about 10 years ago, AOKANG took some Wenzhou shoe enterprises to build "western shoes capital" in Bishan, Chongqing. In the first two years, Kangnai, Dongyi, Emma and BELLE also built a shoemaking base in Anhui Suzhou. Would this threaten Wenzhou's position in the footwear industry?

Xie Rongfang: the shoemaking base transferred by Wenzhou now reflects several problems:

The first is the industrial chain. The footwear industry in Wenzhou is flourishing because we have shoe market, international shoe city and several other shoe market. It is difficult to achieve at least 10 years in Wenzhou, Suzhou and Bishan.

From the transfer to Bishan, Chongqing, some enterprises basically have only one store, and most of them are withdrawn. First, Chongqing is too far away from Wenzhou, and the industry chain is all over. It is very difficult. Moreover, to develop a shoe-making base, there must be several large group support.

BELLE's strong strength and preferential conditions have absorbed Jiangsu's capital, and it has been almost zero price in Suzhou. Do not say that transferred to Bishan, the industrial chain transfer to Lishui, are not very successful.

The two is the problem of skilled workers. The Suzhou base of Dongyi has already begun to produce. The boss's son and daughter-in-law have been sitting in town. They are also very good, but the cost increases can not be avoided.

Reporter: like Nike's manufacturing base in China, but in the past few years, the largest production plant has been transferred from China to Vietnam. Will Wenzhou shoe enterprises do so sooner or later?

Xie Rongfang: Wenzhou Shoe enterprises At present, no transfer to Vietnam or Southeast Asia, even if transferred to Vietnam, is also considered to reduce costs. But do not think that moving abroad is very good, not necessarily. For instance, what do you do when you meet Vietnam's recent events? Investment will fail. It's better to stay steady in Wenzhou. 1 billion 300 million people in China always wear shoes. Shoemaking is always the sunrise industry, but only to improve the quality, improve the R & D design ability and enhance the brand. In the past two years, I have been talking about "making shoes in Wenzhou to the development of science and technology", and some enterprises have already done so, such as the Mongolian shoe company, which has been recognized by national high and new technology enterprises, which is very difficult in shoemaking industry.

Reporter: you have a point of view: now the footwear industry in Wenzhou is in the shuffle stage. How do you understand the connotation of "shuffle"? I have talked with some shoe makers in Wenzhou these days. Some people think that the pattern of Wenzhou footwear industry may be three pillars: Kangnai, AOKANG and red dragonfly. What do you think?

Xie Rongfang: the so-called shuffle is that some enterprises have already been unable to withstand the brutal competition in the market.

As for the future pattern of the footwear industry in Wenzhou, we cannot say so. Because at present, the top 10 brands in Wenzhou are still very stable. Even if there are three pillars, we should see that many enterprises will support these three companies. They may abandon their original businesses, but retain the brand and become the sub brand of the three giants. This is the shuffling process. I think the real shuffle may end up with several big groups in Wenzhou.

Reporter: how long does this process take?

Xie Rongfang: short is 5 years, long is 10 years.

Reporter: China is now upgrading industrial upgrading everywhere. Does Wenzhou think Shoemaking industry Not high-end industry, should be eliminated ideas?

Xie Rongfang: not only in the society, but also in the government. There were also some leaders who believed that these enterprises could not compete with high technology. I have been talking about technology shoemaking for over two years, but I haven't reached a consensus yet. But we report to the China shoe leather industry association. I have always raised this view, whether they approve or not, we have to show it to them. Ten years later, let's talk about this topic again.